Fueling the rally in the energy space, a monthly U.S. energy report argues that global oil demand could jump by the most in six years in 2016 while non-OPEC supply stalls, which suggests that the oil supply glut could be easing more quickly than expected, Reuters reports.

“We have reduced the probability of a return to the $37-38 area per nearby WTI,” Jim Ritterbusch of oil consultancy Ritterbusch & Associates, told Reuters. “We will maintain a long standing view that price declines below this support level are virtually off of the table.”

Additionally, Russia’s energy minister revealed that the government and Saudi Arabia are in talks over the low oil environment, hinting at possible support.